THE slowing world economy looks set to get a boost from stronger consumer demand next year, as low inflation boosts the real value of workers’ pay rises to a three-year high, a survey said.

    A plunge in oil prices has pushed inflation sharply lower and means real wages are predicted to rise by an average of 2.5 percent globally in 2016, the study by human resources firm Korn Ferry Hay Group showed.

    Nominal wage growth of 4.9 percent across a range of 24,000 firms and organizations around the world was in line with recent years. But the fall in inflation was putting more money into the pockets of consumers globally, said Benjamin Frost, a consultant with Hay Group.

    “A lot of what they seem to be doing is spending that money and companies are generally not doing badly either,” Frost said. “They are sharing the love with pay increases and hopefully that will come back around into their tills again.” (SD-Agencies)